London-based Finisterre Capital, responding to what it says is investor demand, has launched an emerging markets equity fund.
The Finisterre Equity Fund, launched last November with $25 million in seed capital, is run by the former Newsmith EM equity team, Alistair Candlish and Edward Cole. The two, who joined Finisterre in August, 2011, also manage “a substantial equity allocation” within the $800 million Finisterre Global Opportunity Fund.
Finisterre’s new fund employs a top-down macro process to invest long and short in equity securities, and uses options and swaps to hedge at a portfolio level.
“There has been growing investor demand for a Finisterre equity fund,” said Paul Crean, co-founder and CIO of Finisterre Capital, in a statement. “The new fund nicely complements our existing emerging markets offerings, and rounds out our EM product range. In addition, we were very fortunate to attract experienced professionals like Alistair and Edward to manage it.”
The Finisterre Equity Fund targets returns of 15-20% net annualized over the business cycle, with a target volatility of 10-13%. Minimum investment is $1 million.